DoD Awards $14M Lumen Contract for Wired Telecom Services, Lacking Competition
Contract Overview
Contract Amount: $13,954,219 ($14.0M)
Contractor: Lumen Technologies Government Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-22
End Date: 2026-02-28
Contract Duration: 890 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LINK 3A TECH REFRESH/CONFIGURATION
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
Department of Defense obligated $14.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: LINK 3A TECH REFRESH/CONFIGURATION Key points: 1. Significant award value of $13.95 million for telecommunications services. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Contract duration extends to February 2026, impacting long-term value. 4. Sector focus on Wired Telecommunications Carriers, essential for defense operations.
Value Assessment
Rating: questionable
The contract's value of $13.95 million for wired telecommunications services needs careful review. Without competitive bidding, it's difficult to benchmark against market rates or similar government contracts to ensure optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition for this $13.95 million contract could lead to taxpayers paying more than necessary for essential telecommunications services.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of Defense. Potential for increased costs due to the absence of competitive bidding. Long-term commitment to a single provider may limit future technological advancements. Impacts the ability of other telecommunications providers to secure government contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service provision
- Long-term contract
Sector Analysis
The contract falls within the Wired Telecommunications Carriers sector, providing essential communication infrastructure. Spending in this sector is critical for government operations, but competitive procurement is key to cost efficiency.
Small Business Impact
The contract was awarded to Lumen Technologies Government Solutions, Inc., and there is no indication of small business participation. The sole-source nature likely precluded opportunities for small businesses in this procurement.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of Defense and DISA should closely monitor contract execution and expenditures to mitigate risks associated with non-competitive awards.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Risk of vendor lock-in.
- Missed opportunities for technological upgrades.
Tags
wired-telecommunications-carriers, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. LINK 3A TECH REFRESH/CONFIGURATION
Who is the contractor on this award?
The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2023-09-22. End: 2026-02-28.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details, it's difficult to assess the validity of this decision. Agencies must provide clear documentation supporting sole-source procurements to ensure accountability and prevent potential misuse of taxpayer funds.
How will the agency ensure fair pricing without competition?
Ensuring fair pricing without competition requires robust internal cost analysis, benchmarking against similar services (if available), and potentially engaging independent cost estimators. The agency should also establish clear performance metrics and payment terms to incentivize efficiency and value from the contractor.
What are the risks associated with a long-term sole-source contract for telecommunications?
Long-term sole-source contracts for telecommunications pose risks such as vendor lock-in, potential for price escalation over time, and missed opportunities to adopt newer, more cost-effective technologies. Without periodic re-competition, the government may not benefit from market innovations or competitive pressures that could lower costs.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101318R0013
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2900 TOWERVIEW RD STE 150, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,954,219
Exercised Options: $13,954,219
Current Obligation: $13,954,219
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $530,707
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101319D0002
IDV Type: IDC
Timeline
Start Date: 2023-09-22
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-09-22
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